Which of the following causes the consumption function to rotate downwards?
A) a decrease in the marginal propensity to save (MPS)
B) a decrease in consumer tax rates
C) a decrease in autonomous consumption
D) a decrease in the marginal propensity to consume (MPC)
D
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a. activist fiscal policy. b. activist monetary policy. c. expansionary fiscal policy. d. contractionary monetary policy.
Lenders sell bonds and borrowers buy them
a. True b. False Indicate whether the statement is true or false
Suppose a firm is considering producing zero units of output. We call this shutting down in the short run and exiting an industry in the long run
a. True b. False Indicate whether the statement is true or false
The period from 1983 to 1990 was characterized by
A. decreasing budget deficits and increasing trade surpluses. B. persistently high inflation. C. below average rates of real GDP growth. D. consistent growth of real GDP and decreasing rates of inflation.